Core Viewpoint - CHANDO has submitted its IPO application to the Hong Kong Stock Exchange, facing multiple challenges including high reliance on its main brand and fluctuating net profits [2][5]. Group 1: Company Overview - CHANDO is the third largest domestic cosmetics group in China based on retail sales projected for 2024, with a valuation exceeding 7.1 billion RMB after a recent investment from L'Oréal [5]. - The company has five major brands covering skincare, makeup, and personal care, with the main brand CHANDO contributing over 94% of total revenue [11][12]. Group 2: Financial Performance - CHANDO's revenue growth has been stable but slow, with a compound annual growth rate of only 3.5% from 2022 to 2024, lagging behind industry leaders [8][9]. - In 2023, the company's net profit peaked at 302 million RMB but dropped by 37.1% to 190 million RMB in 2024, with a slight recovery to 191 million RMB in the first half of 2025 [9]. Group 3: Market Position and Competition - In the first half of 2025, CHANDO's revenue was 2.448 billion RMB, significantly lower than competitors like Pechoin, which achieved 5.362 billion RMB [8][9]. - The company's reliance on a single brand and product category may weaken its ability to adapt to market fluctuations, especially in a diversifying beauty market [13]. Group 4: Marketing and R&D Expenditure - CHANDO's sales and marketing expenses reached 2.717 billion RMB in 2024, accounting for 59% of total revenue, which is 14.3 times its net profit for the year [14]. - The company's R&D investment has been relatively low, totaling only 348 million RMB from 2022 to the first half of 2025, with a decreasing R&D expense ratio compared to industry peers [14]. Group 5: Online Sales Strategy - The company has a high dependency on online sales, with online revenue accounting for 68.8% of total income in the first half of 2025, primarily from direct online sales [14][15]. - The increasing competition in e-commerce and rising customer acquisition costs may further pressure the company's profit margins [15].

Core Viewpoint - Natural堂, a Chinese beauty brand, has submitted its listing application to the Hong Kong Stock Exchange, aiming to rank seventh in revenue among domestic beauty companies if successful [1] Group 1: Financial Performance - In 2024, Natural堂 recorded revenue of 4.601 billion yuan, surpassing Shuiyang Co.'s 4.24 billion yuan, with a net profit of 203 million yuan, ranking sixth among peers [1] - Revenue from 2022 to 2024 was 4.292 billion yuan, 4.442 billion yuan, and 4.601 billion yuan respectively, with the "Natural堂" brand contributing approximately 95% to total revenue [1] - Net profit figures for the same period were 139 million yuan, 312 million yuan, and 203 million yuan, indicating a decline of over 30% in 2024 [2] Group 2: Cost Structure - Sales and marketing costs in 2024 reached 2.717 billion yuan, a 12% increase year-on-year, accounting for 59% of total revenue [2] - In comparison, Shuiyang Co.'s sales expenses were 2.079 billion yuan, approximately 49% of its revenue, while the leading company, Proya, had sales expenses of 5.161 billion yuan, about 47.9% of its revenue [3] Group 3: Channel Strategy - Online channel revenue increased from 2.56 billion yuan in 2022 to 3.162 billion yuan in 2024, with its share of total revenue rising from 59.7% to 68.8% [3] - The "One Inventory System" launched in July 2021 has improved supply chain efficiency, allowing for synchronized tracking of inventory across online and offline channels [3] - Direct-to-consumer (DTC) sales from online stores rose from 1.82 billion yuan in 2022 to 2.44 billion yuan in 2024, increasing its contribution to total revenue from 42% to 53% [3] Group 4: Future Plans - The listing application indicates plans to enhance DTC capabilities, expand the brand matrix, and invest in research and product development, although specific fundraising amounts and allocations were not disclosed [4]